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not at all to hedge is best thing as company can show price and protect themself while they making profit. its best thing acutally reduce debt then borrow big. amazing plan long term
Yes it is sensible, but the other side in the hedge must have some sort of guarantee from some institution, as they do not know whether RMM will be there tomorrow. All most odd.
basically yes they borrow big and placing or parner as said. u don't suspend a share without a reason. rmm got lot of interest even myself. so at this point as said rmm in best situlation ever. rmm need to reduce cost eltric yes that could save them 1 million a month.
Should be doing this all of the time at various points so that the business and investors know what is coming in. Common risk management practice for many businesses who are exposed to market prices such as this or currencies for example.
So, what you are saying is the cost cutting exercises will pay off debt in the next 12/18 months, so then they can borrow more to grow the business in the future?
by reducing the debt and showing they can pay off debt with good intension then they can borrow more because with out borrowing more they cant make mine work as it cost to much. they need upgrade 500 m eltric cable. they need ore sorter with out these things rmm is stuck in limbo. but they are smart to reduce staff good way acutally
thanks, that works.
Try this
https://discord.gg/daBxSGDD
Make profit to pay off loans then borrow big to reduce debt? That doesn't make sense. Wouldn't borrowing more increase debt?
Ah sorry Spero. Will try and get a updated one or see if anyone else can share
Thanks Santhi123, but that previously posted one has expired. I think they only have a short life before timing out
meaning they are possible 2.8 so we making profit to pay off loans then borrow big time. to reduce our debts. to suspend a share is done for reason.
https://discord.gg/zdpsYrME
Here you go Spero
Rambler is obviously ticking boxes for a new loan agreement on better terms! Reduction in costs of $1 million a month and now securing 11% of the copper production for the next 12 months! I would not be surprised if we get a few more RNS showing they have forward sold more at a similar rate! Showing lenders, they have a good revenue stream for the next 12 months and can afford to pay back the money lent and not get into this position in the future.
Could someone please post a link?
same thing they will get money they reduce the debt then big borrowing coming to turn it into mid tier. first thing is eltric cost upgrades
Almost certainly the $6.2m would have gone straight to the lenders rather than RMM itself. And I expect the lenders had to give some guarantee to the buyer of the copper that they would get their money back if RMM went down the pan. Clearly the Loan Default has not been remedied, as if it had, RMM would have disclosed that in the RNS.
I am a bit surprised none of the big miners have offered to buy RMM which for them would be petty cash in a very stable country. So it does look like a placing or bust.
Presumably we have pre-emption rights
This now we’re things becoming very interesting by suspending the share to get everything in order then there buddy in at cheap rate. As I said. Now fun has begin. They about to change into mid tier. All of this done on purpose. Best time ever for rmm
So what
https://www.**********.co.uk/rns/announcement/c949379c-d68c-4e4f-af51-d5ba681a9992/
So that I understand this correctly, has RMM just received ca.£5.25M from the forward sale? That is, they have over half their mcap in cash and can pay the monthly debt owed and continue with their cost saving strategy and more importantly readmit to trading with no dilution necessary ? GLA, Dan
Evidence that a deal with lenders is being rolled out?
The copper price chart looks quite promising......
Could be helpful, or a requirement, to have a more predictable income, as part of the negotiatioins with creditors. They've already reduced costs for the same reason.
They've forward sold 11% of next year's production for $8330 per tonne.( approx $3.8 per lb)...
This gets them $ 6.2 m cash...
Suggests a t/o of 60m ...
5m per month....
We've got cost savings of 1m per month...
If we could make 500k per month then 6m per year , that would give a mcap of 50 m....so a share price of 25p...